If your business is thinking about hiring UK talent or relocating employees into the United Kingdom in 2025, this isn’t just another legal compliance checklist. UK employment law is shifting in meaningful ways.
That’s especially true with the latest developments in the Employment Rights Bill and a continuing focus on worker protections, fair work practices, and clearer workplace standards.
Whether you come from a jurisdiction with rigid labor law or a more flexible system, the expectations in the UK are evolving, and they matter for your global workforce strategy.
In this piece we’ll walk through everything a global HR leader, founder, or operations exec needs to know, from basic employment rights to contracts, working hours, wages, leave and pay, and the risks you need to watch in 2025.
What Is UK Employment Law (and Why It Matters Now)
At its core, UK employment law sets the rules for the relationship between employers and employees. It covers everything from minimum standards on pay and holiday entitlements to protections against unfair dismissal and discrimination.
The foundations of UK employment law are built on statutes like the Employment Rights Act 1996 as well as European‑derived protections such as the Working Time Regulations.
For multinational businesses, understanding this isn’t optional. If UK law doesn’t apply because a worker is genuinely remote or independent, that’s one thing. But where UK employment status applies for UK employees, the protections are statutory. That means employees don’t have to negotiate them, they’re rights at work.
Employment Rights Act 1996
The Employment Rights Act 1996 is a cornerstone, it’s the statute that sets out many of the core workplace protections, including wrongful dismissal, redundancy rights, payslips rules, and notice requirements.
Key points global employers should note:
- It defines rights around pay, notice, redundancy, and dismissal procedures.
- It distinguishes between employees and workers, and that distinction affects things like tribunal rights.
- Violations of statutory employment rights often end up in an employment tribunal. These are specialist courts that enforce workplace law.
Employment Contracts
A contract of employment is not just a piece of paper. It forms the legal baseline of the employer‑employee relationship. UK law requires that employees receive a written statement of terms and conditions no later than the first day of work, covering things like job title, pay, hours, and holiday entitlement.
If you’re relocating staff or hiring remote workers inside the UK:
- Make sure employment contracts comply with UK statutory minimum terms.
- Include clear conditions about probation, working hours, and notice.
- Be aware that statutory rights can’t be contracted out of, even if you try to include them in your own enhanced company policies.
Working Hours and Annual Holiday Entitlement
The UK Working Time Regulations govern how long people can work, how breaks are scheduled, and holiday entitlements. The basic rule is that most workers cannot be required to work more than 48 hours a week on average, unless they explicitly agree to opt out.
Other expectations under UK law include:
- Daily and weekly rest breaks (for health and safety reasons).
- A minimum of 28 days paid annual holiday including bank holidays (for full‑time workers).
- Rules on night work and special arrangements for younger employees.
These might differ from what you’re used to in other jurisdictions. Many global firms find that UK holiday entitlements and working time protections are more structured than in, for example, U.S. at‑will systems.
National Minimum Wage Rates and the Living Wage
The UK has a statutory national minimum wage that employers must pay. This changes annually and varies by age group, with the highest national living wage set for workers aged 23 and over.
For global businesses this means:
- You can’t pay internationally recruited UK workers less than the statutory rate.
- Failing to pay minimum wage can lead to enforcement action and employer liability.
Bear in mind there’s also a broad cultural and legal cost associated with fairness at work, undervaluing staff can impact retention and public perception of your brand in the UK market.
While the national minimum wage is the legal floor, the concept of the living wage — a higher voluntary standard set by independent bodies, matters for employer branding and recruitment in the UK market. Wikipedia
Global companies should consider:
- Whether to adopt living wage commitments to attract talent.
- The reputational benefit of higher wage standards.
- Legal compliance with statutory minima.
Leave and Pay Rights for UK Employees
UK employees are entitled to a range of statutory rights relating to leave and pay:
Annual Leave and Paid Time Off
Every full‑time worker in the UK gets a statutory entitlement of paid annual holiday. This is typically 28 days for full‑time employees.
Sick Pay
Statutory sick pay (SSP) provides a base level of pay when an employee is off sick. The Employment Rights Bill proposes strengthening sick pay by removing waiting periods and extending coverage.
Family Rights
The push in 2025 reforms aims to expand family‑related rights, including maternity, paternity leave, and bereavement leave provisions as part of the broader reform bill.
In addition to holiday, sick, and family leave, UK law provides other statutory paid leaves which you need to factor into workforce planning, including:
- Bereavement leave proposals in the Employment Rights Bill.
- Parental and adoption pay rights.
- Statutory rules on flexible and family‑friendly working.
All these feed into payroll and HR systems, and missteps can lead to claims at employment tribunals.
Trade Union Rights and Collective Representation
Trade union activity and collective bargaining are part of UK labor law, and employers have duties related to union recognition and engagement. Under current proposed reforms:
- Employers may be required to give employees information about their right to join a union.
- Collective bargaining and industrial relations frameworks are being modernized.
For global firms used to non‑union workplaces, the UK’s approach means being prepared for structured dialogue and respecting collective rights.
Unfair Dismissal
One of the most high‑profile reforms moving through Parliament is about unfair dismissal rights. Traditionally, employees needed a qualifying period, generally two years’ service, before they could bring an unfair dismissal claim.
Under the emerging Employment Rights Bill, that qualifying period is being reformed so that protections could start much earlier (potentially after six months of service).
This matters because:
- Employers must have fair reasons for dismissal.
- Procedures must be followed meticulously.
- Employees can bring claims to an employment tribunal for unfair dismissal.
Global businesses need robust dismissal policies and documentation to avoid costly disputes.
Redundancy and Workforce Changes
If your company is restructuring, you must follow proper redundancy procedures:
- Provide statutory redundancy pay based on age and service.
- Consult employees when larger redundancies are proposed.
- Apply fair selection practices.
These protections are deeply rooted in UK law and failure to comply can trigger tribunal claims.
Case Law and the Employment Tribunal System
UK employment law isn’t static. Case law, decisions from employment tribunals, the Employment Appeal Tribunal, and higher courts, shapes how laws are interpreted and enforced.
Key practical points:
- Tribunals interpret statutory duties like discrimination and employment rights on a case‑by‑case basis.
- Recent trends show an uptick in claims, which has put pressure on tribunal backlogs. Financial Times
- You can’t just rely on contracts alone, how courts interpret the law matters.
Right to Work
Every UK employer must check that an employee has the right to work in the UK. This is a civil and potentially criminal obligation. Fines can be significant for non‑compliance, and recent media coverage highlights this risk. The Times
Best practice includes:
- Systematic right‑to‑work checks before hiring.
- Keeping records updated.
- Verifying visas and immigration status.
This dovetails with employment law because if someone is employed unlawfully, many statutory employment rights still attach.
Flexible Working, Zero‑Hours Contracts, and Modern Work Arrangements
Flexible working is gaining traction in UK law, and the Employment Rights Bill aims to give employees the right to request flexible arrangements from day one.
Zero‑hours contracts are also under scrutiny:
- The government is proposing stronger protections against exploitative zero‑hours arrangements and guaranteed hours for agency workers.
If you use contingent workforces or casual engagements, UK law will likely tighten around what counts as acceptable flexibility.
The Evolving Employment Rights Bill
As of late 2025, the Employment Rights Bill is nearing the final stages of the UK parliamentary process with Royal Assent anticipated before year‑end.
Key reforms it proposes include:
- Reducing or removing qualifying periods for unfair dismissal.
- New leave rights, including bereavement and expanded parental rights.
- Stricter rules on zero‑hours and guarantees of minimum hours.
- Stronger sick pay provisions.
- Reforms around trade unions and workplace organisation.
Almost every modernisation has implications for global employers operating in the UK.
Practical Compliance Checklist for Global Businesses
Before you make UK hires or relocations:
- Review contracts to ensure compliance with statutory minimum terms.
- Audit wage policies against the national minimum wage and living wage benchmarks.
- Implement robust right‑to‑work checks for every hire.
- Train managers on dismissal and redundancy procedures to avoid unfair dismissal claims.
- Update HR systems for statutory leave calculations and reporting.
- Prepare for changes coming with the Employment Rights Bill in 2026 and beyond.
Wondering How to Make UK Hiring Simple?
Hiring in the UK doesn’t have to feel like decoding legal scrolls from a forgotten era. Yes, employment law here is layered, evolving, and a little quirky, but that’s where we come in.
At Empleyo, we help global businesses navigate the twists and turns of UK labor law with confidence. Whether you’re hiring one employee or relocating an entire team, our Employer of Record (EOR) services take the guesswork out of compliance, contracts, and all the fine print in between.
Got questions about how the Employment Rights Bill impacts your plans? Or just want someone to double-check you’re not missing any hidden HR traps?
Let’s talk. We’ll make UK hiring easier, and a lot less stressful.
